DDG Price Drops $18 Per Ton Over 4 Past Weeks – DTN

The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted moved lower again this week versus the prior week, down $4 at $121 per ton for the week ended May 9. Many prices ranged from unchanged to down $3 per ton, to a few prices down $15 per ton.

In the past four weeks, the DTN average DDG price has dropped a total of $18 per ton. DDG prices are under pressure from continued losses in the corn market, along with an increase in ethanol plant production ahead of lower seasonal demand. The EIA said Wednesday that during the week ended May 3, ethanol plant production ramped up by 12,000 barrels per day (bpd) or 1.2% to 1.036 million bpd, the third highest weekly output rate in 2019.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended May 9 was at 98.34% and remains below the two-year average. The value of DDG relative to soybean meal was at 42.41%. The cost per unit of protein for DDG was $4.48, compared to the cost per unit of protein for soybean meal at $6.01.

In its weekly DDGS price report, the U.S. Grains Council noted, “DDGS indications were mostly down this week; containers to Southeast Asia were down $6 per metric tons on average. Markets are working to buy demand and keep DDGS competitive against soymeal.”

The U.S. Census Bureau said Thursday that U.S. exports of DDGS totaled 956,828 metric tons (mt) in March, up from 686,005 mt in February and up 6% from a year ago. Turkey was a new top destination in March, taking 17% U.S. exports and followed by the familiar list of Mexico, South Korea, Vietnam and Indonesia. In the first three months of 2019, U.S. exports of DDGS were down 7% from a year ago.

Wall Street Journal writer Josh Zumbrun reported on Thursday that, “The Trump administration said it would spend $16 billion to offset the impact on American agriculture from the trade conflict with China, […]